Explicit and implicit cost with example.

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Answer 1

Question

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

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The table below shows pizza topping preferences for Marcus, Dakota, and Austin, and that each individual has strictly transitive preferences. Suppose that three individuals make up our "society." In this society, prefer pepperoni to cheese pizza; _prefer cheese to supreme; and prefer supreme to pepperoni. This example illustrates that _ Person Marcus Dakota Austin 0000 First Preference Pepperoni Supreme Cheese Second Preference Cheese Pepperoni Supreme Third Preference Supreme Cheese Pepperoni two-thirds; two-thirds; two-thirds; even if individuals' preferences might satisfy the transitive property, societal preferences may not. two-thirds; two-thirds; everyone; if individuals' preferences satisfy the transitive property, societal preferences must also. two-thirds; two-thirds; everyone; even if individuals' preferences might satisfy the transitive property, societal preferences may not. two-thirds; two-thirds; two-thirds; if individuals' preferences satisfy the transitive property,…

Consider the table below, which has data on insurance status and medical expenditures for different types of professors at Hypothetical University (HU), economics & criminology professors. Assume that there are an equal number of economics and criminology professors. Assume further that econ professors all have the same level of health and criminology professors all have the same level of health. In 2020, every professor was offered a full insurance contract with no premium. In 2021, HU charged any employee who wanted to keep health insurance the actuarially fair premium based on 2020 expenditures. This premium would be equal to and, as a result,professors dropped their coverage in 2021. _ 2020 2021 Insured? Avg. Expenditures Insured? Avg. Expenditures Economics Professors Criminology Professors Yes Yes $25,000 $15,000 000000 $15,000; criminology $25,000; econ $20,000; econ $15,000; econ $20,000; criminology $25,000; criminology ??? $28,000 ??? $10,000

Consider the table below, which has data on insurance status and medical expenditures for different types of professors at Hypothetical University (HU), economics & criminology professors. Assume that there are an equal number of economics and criminology professors. Assume further that econ professors all have the same level of health and criminology professors all have the same level of health. There is evidence of 2021 Insured? Avg. Expenditures Insured? Avg. Expenditures 2020 Economics Professors Criminology Professors Yes. Yes $25,000 $15,000 0000 ??? ??? $28,000 $10,000 I. moral hazard because in 2021 criminology professors dropped their coverage and health expenditures went down. II. adverse selection because in response to rising premiums after 2020, the professors with lower health expenditure dropped coverage Both I and II neither I nor II

Answer 2

Question

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

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Answer 3

Question

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

Answer 6

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

Answer 7

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Answer 8

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

Answer 12

Ch. 9.2 - Prob. 1QQ Ch. 9.2 - Prob. 2QQ Ch. 9.2 - Prob. 3QQ Ch. 9.2 - Prob. 4QQ Ch. 9.5 - Prob. 1QQ Ch. 9.5 - Prob. 2QQ Ch. 9.5 - Prob. 3QQ Ch. 9.5 - Prob. 4QQ Ch. 9.8 - Prob. 1QQ Ch. 9.8 - Prob. 2QQ

Explicit and implicit cost with example.

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Explicit and implicit cost with example.

Explanation of Solution

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